Suzette works in downtown L. as a copy-shop manager, and she earns $100 per day. She drives to work, and parking is expensive at the nearby lot: $19…

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Suzette works in downtown L.A. as a​ copy-shop manager, and she earns​ $100 per day. She drives to​ work, and parking is expensive at the nearby​ lot: $19 per day. The company that owns the parking lot also owns many​ others, and it is understaffed. Instead of putting an attendant at each​ lot, it asks lot users to put the money in a special box on the premises along with their car license number. To check on​ compliance, it sends an employee randomly to its different lots during the week. If a car is found parked in the lot whose owner​ hasn’t paid, a fine of​ $36 is levied. The chance of being caught if the owner​ doesn’t pay is​ 20% (i.e., the probability is​ 0.20).

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